Mathias Korder is the CEO & Co-Founder of Baselane, a powerful banking and financial management platform for real estate investors.getty
With fluctuating rent prices, varying vacancy rates and evolving property ownership expenses, today’s rental scene is in flux. Moreover, the rise of flexible work arrangements and technologies is helping reshape what prospective tenants seek. While these shifts come with their own set of challenges, I see signs still pointing to a growing demand for rental properties.
The following comprehensive guide on the 2023 rental landscape is informed by my firsthand experiences as a real estate investor as well as a leader of a financial management platform for real estate investors.
Current Rental Landscape: Insights And Data
Overall, data collected from recent industry reports indicate a slight dip in average rent prices, but most markets continue to show rent increases. For renters, lease renewals or moving outside the city are viewed as their most affordable options.
I believe that these unique conditions mean landlords can confidently raise rent prices and potentially find deals on suburban properties to capitalize on tenants moving outside of major cities. Here is an overview of the current landscape:
• According to Rent.com’s annual report, median rent prices have increased by more than 25% over the past two years, with a median rent of $2,038 as of July 2023.
• The rental vacancy rate presently stands at 6.3% compared to 5.8% in the fourth quarter of 2022.
• On a monthly basis, 57.14% of markets saw rent growth while 42.86% contracted.
• The Rent.com report specifically shows median rent prices in the West continuing to decline, particularly in places like Washington, Idaho and Arizona.
• It also shows Northeastern states experiencing state-level rent growth, including a 12% increase in New York and a 7.46% growth in New Hampshire.
• Midwest and Southern markets show some of the largest yearly gains in median rent prices, including an increase of up to 26% …
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